Hugo Britt
Written by Hugo Britt

Have you got AI FOMO in procurement? We’re talking about that nagging feeling that other procurement teams are taking steps to become increasingly efficient while your team seems stuck in analog mode.

This anxiety isn’t helped when you see CPOs across businesses of every size and shape announcing huge efficiency gains achieved through AI-driven solutions.

What’s clear, though, is that the costs, time, and effort associated with sourcing continue to rise.

Efficiencies must be found.

This article explores seven reasons your procurement team may be inefficient, seven ways to work smarter, not harder (including AI), and the ultimate solution for rapid efficiency improvements: joining a group purchasing organization (GPO).

 

AI Adoption is Accelerating

The 2025 Global CPO Survey from EY highlights that 80% of global CPOs plan to deploy generative AI in the next three years. Currently, 36% of procurement organizations have meaningful implementations in place.

But what exactly are procurement teams using AI for? Here are the top six applications in procurement:

  1. Spend Analytics: Using machine learning (ML) to classify spend data and identify savings opportunities.
  2. Semi-Automated Sourcing: Empowering stakeholders with AI assistance in sourcing tasks, from developing scope documents to analyzing RFP responses.
  3. Procurement Orchestration: Streamlining the procurement process by guiding users through purchasing channels based on their needs.
  4. Contract Management: Automating the extraction of key terms and obligations from contracts (using Intelligent Document Processing) to enhance compliance monitoring.
  5. AI-Based Negotiation: Implementing AI tools for supplier negotiation; looking towards a future where both the purchaser and supplier deploy AI negotiation-bots!
  6. Supplier Management: Enhancing supplier data quality and performance monitoring through AI analytics.

Clearly, AI adoption currently offers the clearest path to procurement efficiency. But if you’re in an organization that is yet to begin its AI journey, or perhaps you have an old-school CFO who is unconvinced of the benefits, there are other paths to efficiency to explore.

7 (Other) Reasons for Inefficiency in Procurement

  1. Lack of Standardization: Inconsistent processes across departments lead to confusion and chaos.
  2. Poor Supplier Relationships: Ineffective management of supplier relationships can result in miscommunication and missed value.
  3. Time-Consuming Manual Processes: Performing manual tasks (that could have been automated) diverts resources from strategic objectives.
  4. Limited Buying Power: Smaller organizations struggle to negotiate favorable terms with suppliers.
  5. Inadequate Data Utilization: Failing to leverage data analytics hinders informed decision-making.
  6. Unclear Goals and Metrics: Lack of clear objectives makes it difficult to assess procurement effectiveness.
  7. Limited Expertise: A lack of skilled professionals can weaken negotiation capabilities.

7 Ways to Work Smarter, Not Harder

  1. Embrace AI: Implement AI solutions to automate repetitive tasks and analyze procurement data for better decision-making.
  2. Standardize Processes: Create uniform procurement processes across departments to minimize confusion and enhance efficiency.
  3. Leverage Data Analytics: Use data-driven insights to identify trends, forecast needs, and optimize supplier selection.
  4. Improve Supplier Communication: Foster strong relationships with suppliers for better service and collaboration.
  5. Set Clear Objectives: Establish measurable goals to evaluate procurement effectiveness.
  6. Encourage Change Management: Support your team in embracing new tech and processes to improve procurement outcomes.
  7. Join a GPO! Access the collective buying power and expertise of a group purchasing organization to enhance procurement efficiency.

how to improve procurement playbook

The Ultimate Solution: Joining a GPO

While you’re working on the procurement AI strategy, consider joining a group purchasing organization (GPO) to generate efficiencies, fast. Member organizations gain access to pre-negotiated contracts, significant cost savings (Una achieves 18% to 20% in indirect categories), and a wide network of top suppliers. What’s more, GPO members can bypass lengthy negotiation processes and contract wrangling across several indirect categories, saving valuable time and moving the needle on procurement efficiency.

Joining a GPO is as Easy as 1, 2, 3

  1. The Discovery Call: As the first step to savings, this is where we get to know each other, define what success looks like for you, and set a timeline for the connection process.
  2. Running a Cost Analysis: This is Una’s time to shine and where we can show real value. We’ll send your spend data directly to our supplier base to compare costs and identify savings.
  3. Connect to Suppliers: After the cost analysis, we’ll work quickly to get you connected so you can start saving as a GPO member right away.

Download our free guide to membership so you can get a better idea of how Una operates and what to expect from membership.

Ready to get started? Our team is here to help. Contact us to start working smarter today.